CDL to make 'significant gains' from sale of Tanglin Shopping Centre

PROPERTY developer City Developments Ltd (CDL) said in a bourse filing early on Wednesday (Mar 30) that it expects to make a "significant gain" from its sale of Tanglin Shopping Centre to Hillthorpe Investments, an investment vehicle of Pacific Eagle Real Estate.

C09 : C09 0% board believes that the sale, which includes 85 strata lots including 2 car parks, will help the company recycle and reallocate its capital in line with the company's overall strategy to divest some of its assets at a premium to net book value and/or valuation.

The sale also complements the company's strategic review of its subsidiary Millennium & Copthorne Hotels after its delisting.

Millennium & Copthorne Hotels is the parent company of King's Tanglin Shopping, the current owner of the mall.

The freehold Tanglin Shopping Centre was sold for S$868 million or S$2,769 per square foot per plot ratio in February this year to the Singapore-based real estate investor and developer privately held by the Tanoto family, said its marketing agent Savills Singapore.

The sale price concluded is about 10 per cent above the reserve price for the office, retail and car parking complex, in a fourth attempt at a collective sale.

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The aggregate strata area sold spans 21,229 square metres, which represents 60.2 per cent of the total strata area and 34.6 per cent of the total share value of Tanglin Shopping Centre.

READ MORE:

• CDL will be a key beneficiary in the collective sale of Tanglin Shopping Centre
• Tanglin Shopping Centre sold for S$868m to Tanoto family's Pacific Eagle Real Estate
• Developers show restraint in latest GLS tender, despite shrinking unsold inventory
• Ageing buildings take another crack at going en bloc